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The Asian butadiene market nosedived last Friday to $940/ton FOB Korea term – the lowest levels since late July, due to weak buying interest and bloated inventories in local China market. Industry participants are expecting further decline in the near term citing the fact that many Chinese suppliers are exporting butadiene to the regional market.

With the falling butadiene costs, Asian players turn attention to the near term outlook in the ABS market. In the previous week, import ABS from Fareast Asian makers to Southeast Asia fell approximate $40/ton to $1860-1900/ton CIF, LC AS term. “And this week, we are expecting larger reduction as upstream costs are lower. Demand is not very strong and we are on the sideline at the moment,” a buyer commented.